Edition:
U.S.
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
Home
Business
Business Home
Economy
Technology
Media
Small Business
Legal
Deals
Earnings
Social Pulse
Business Video
The Freeland File
Markets
Markets Home
U.S. Markets
European Markets
Asian Markets
Global Market Data
Indices
M&A
Stocks
Bonds
Currencies
Commodities
Futures
Funds
peHUB
World
World Home
U.S.
Brazil
China
Euro Zone
Japan
Mexico
Russia
India Insight
World Video
Reuters Investigates
Decoder
Politics
Politics Home
Election 2012
Issues 2012
Candidates 2012
Tales from the Trail
Political Punchlines
Supreme Court
Politics Video
Tech
Technology Home
MediaFile
Science
Tech Video
Tech Tonic
Social Pulse
Opinion
Opinion Home
Chrystia Freeland
John Lloyd
Felix Salmon
Jack Shafer
David Rohde
Bernd Debusmann
Nader Mousavizadeh
Lucy P. Marcus
David Cay Johnston
Bethany McLean
Edward Hadas
Hugo Dixon
Ian Bremmer
Lawrence Summers
Susan Glasser
The Great Debate
Steven Brill
Jack & Suzy Welch
Frederick Kempe
Christopher Papagianis
Breakingviews
Equities
Credit
Private Equity
M&A
Macro & Markets
Politics
Breakingviews Video
Money
Money Home
Tax Break
Lipper Awards 2012
Global Investing
MuniLand
Unstructured Finance
Linda Stern
Mark Miller
John Wasik
James Saft
Analyst Research
Alerts
Watchlist
Portfolio
Stock Screener
Fund Screener
Personal Finance Video
Money Clip
Investing 201
Life
Health
Sports
Arts
Faithworld
Business Traveler
Entertainment
Oddly Enough
Lifestyle Video
Pictures
Pictures Home
Reuters Photographers
Full Focus
Video
Reuters TV
Reuters News
Article
Comments (0)
Follow Reuters
Facebook
Twitter
RSS
YouTube
Read
Romney apologizes for bullying incident at school
3:06pm EDT
No survivors found after Russian plane crashes in Indonesia
|
4:01pm EDT
Bernanke: even worthy borrowers can't get mortgages
4:00pm EDT
Crash deals blow to Russian aerospace revival
3:54pm EDT
John Travolta's Attorney Threatens Accuser with Malicious Prosecution
12:50am EDT
Discussed
137
Obesity fight must shift from personal blame: U.S. panel
121
Florida nabs white supremacists planning ”race war”
91
Obama says same-sex couples should be able to marry: ABC
Watched
Russian plane crash in Indonesia
3:33am EDT
World's rarest gorilla makes camera-trap debut
Wed, May 9 2012
Russian plane goes missing in Indonesia
Wed, May 9 2012
Pictures
Reuters Photojournalism
Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography. See more | Photo caption
Gay marriage battle
A look at the legal battles and the controversies over gay marriage. Slideshow
Wild weather
Scenes of the awesome and sometimes destructive power of nature. Slideshow
Intel CEO plays down concerns about tech spending
Tweet
Share this
Email
Print
Related News
Online sharing, how much is too much?
6:16am EDT
Micron likely winner in bid for Japan's Elpida: NHK
Fri, May 4 2012
Samsung unwraps latest Galaxy rival to iPhone
Thu, May 3 2012
Nokia defends strategy to exasperated investors
Thu, May 3 2012
REFILE-UPDATE 2-Chip firm Ceva cuts 2012 outlook on Nokia woes
Wed, May 2 2012
Related Topics
Tech »
Media »
iPad »
A video wall displays Intel's logos at the unveiling of its second generation Intel Core processor family during a news conference at the Consumer Electronics Show (CES) in Las Vegas January 5, 2011.
Credit: Reuters/Rick Wilking
By Noel Randewich
SANTA CLARA, California |
Thu May 10, 2012 3:31pm EDT
SANTA CLARA, California (Reuters) - Intel Corp Chief Executive Paul Otellini said he is not seeing unexpected weakness in enterprise technology spending that Cisco CEO John Chambers cited when he forecast quarterly earnings below estimates.
"This quarter is playing out as we thought. The enterprise is good, it's not fantastic, so we don't see a change in that," Otellini said in answer to a question at Intel's annual investor day on Thursday.
Shares of Cisco Systems Inc, which relies on government and corporate spending on Internet gear, dropped more than 10 percent on Thursday following its earnings report a day earlier.
"I think John's comments were focused on Europe in particular. We haven't seen any change in Europe demand on the enterprise side," Otellini said.
Much of the presentations by Otellini and other Intel executives showcased the chipmaker's long-awaited push into smartphones and ultrathin laptops. Intel offered little new hope to investors concerned about languid PC sales.
Otellini also forecast that Intel, with its deep pockets, would survive as one of a handful of leading-edge chip manufacturers as the sector moves toward larger and costlier factories.
With the industry preparing to increase the size of the silicon wafers it uses, letting manufacturers fit more chips on each, future leading-edge factories will cost more than $10 billion each to build, compared with about $5 billion now, Otellini added.
With worldwide PC shipments barely growing, Intel has been racing to establish a foothold in smartphone and tablet markets, where processors based on ARM Holdings' power-efficient chip designs are widely used.
Last month in India, Lava International launched the first smartphone using Intel's new Medfield processor and the device has received respectable reviews from benchmark testers.
"We're getting awfully good reviews for our first phones," Otellini told investors at an annual Intel event. "We have ambitions; you'll see more announcements over time and very cool capabilities built into phones."
Before declaring that Intel is a serious player in the mobile market, many investors are waiting to see how successful the new handsets become with consumers. Growing expectations that Intel will be able to compete have fueled gains in its shares in recent months.
Intel is heavily promoting a PC category it has dubbed ultrabooks, similar to Apple Inc's Macbook Air and offering some of the technological chic the iPad and other tablets epitomize.
Major manufacturers like Asus and Hewlett Packard are launching ultrabooks, but some investors are concerned that the expensive components used in them, such as solid-state drives, make them too pricey for many consumers.
Intel Vice President Kirk Skaugen, in charge of the ultrabook push, said the laptops are aimed at prices starting at $700.
Demonstrations of future gadgets, including an ultrabook with a touchscreen display, won polite applause. But analysts said they heard little to reduce concerns that Intel may sacrifice profit margins on sales of its processors to make ultrabooks affordable and help drive sales.
Otellini said sales were on track and would pick up in the second half of 2012 as more manufacturers start using Intel's new Ivy Bridge processor for PCs.
"We're on track to meet our goal of 40 percent of consumer notebooks this holiday season being ultrabooks," Otellini said.
Last month, Intel posted quarterly earnings that failed to inspire gains in its recently high-flying stock and also said costs associated with ramping up new production lines for the Ivy Bridge chips would hurt gross margins more than expected.
Global PC shipments in the first quarter grew a tepid 1.9 percent from the year-ago period, according to research firm Gartner.
Helped by emerging markets, the new Ivy Bridge processor and ultrabooks, Intel expects PC shipments this year to grow by a "high-single digits" percentage.
Otellini said manufacturers are working on 20 tablets using Intel processors and Microsoft's long-awaited Windows 8 platform, expected later this year.
(Editing by Andre Grenon, Gary Hill and Steve Orlofsky)
Tech
Media
iPad
Related Quotes and News
Company
Price
Related News
Tweet this
Link this
Share this
Digg this
Email
Reprints
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (0)
Be the first to comment on reuters.com.
Add yours using the box above.
Edition:
U.S.
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
Back to top
Reuters.com
Business
Markets
World
Politics
Technology
Opinion
Money
Pictures
Videos
Site Index
Legal
Bankruptcy Law
California Legal
New York Legal
Securities Law
Support & Contact
Support
Corrections
Connect with Reuters
Twitter
Facebook
LinkedIn
RSS
Podcast
Newsletters
Mobile
About
Privacy Policy
Terms of Use
AdChoices
Copyright
Our Flagship financial information platform incorporating Reuters Insider
An ultra-low latency infrastructure for electronic trading and data distribution
A connected approach to governance, risk and compliance
Our next generation legal research platform
Our global tax workstation
Thomsonreuters.com
About Thomson Reuters
Investor Relations
Careers
Contact Us
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.